Farm Progress

Farm storage loan approval process

August 13, 2009

1 Min Read

USDA’s Farm Service Agency will begin accepting and approving applications for farm storage loans on Monday, Aug. 17.

USDA has released notices to FSA state and county offices on the new regulations for the Farm Storage Facility Loan Program improvements authorized in the Food, Conservation and Energy Act of 2008.

“These loan changes are a great benefit to corn farmers,” National Corn Growers Association President Bob Dickey said. ”Better farm storage allows producers to improve future planning for their businesses and increasing loan length and amounts of loans will make a huge difference. Many farmers are pleased to have these new options available for their farming operations.”

Changes made in the 2008 farm bill include increasing the maximum loan limit from $100,000 to $500,000 and the maximum loan term from seven to 12 years. Additionally, the secretary of agriculture is now authorized to allow partial disbursement of the loan to assist in the construction of storage facilities and offer more options for farmers to be able to pledge security for the loan.

“We are excited that producers across the country now have access to a much improved program,” said Bart Schott, NCGA incoming first vice president. “NCGA worked closely on these important changes with members of Congress, including House Agriculture Committee Chairman Collin Peterson, D-Minn., Rep. Earl Pomeroy, D-N.D., and Sen. Kent Conrad, D-N.D., during the past farm bill. Our organization appreciates the work these gentlemen put into making this a reality.”

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